Forum Finance launches a high conviction global equity strategy

The Forum Finance Group is launching a new high conviction global equity strategy. The implementation of the investment strategy has been entrusted to Charles-Henri de Marignac, who joined Forum Finance in 2017 to develop it. The strategy is structured in the form of a Luxembourg Reserved Alternative Investment Fund (or RAIF), which is not registered for distribution in Switzerland and is only available to qualified investors.

A manager with strong convictions

Before joining Forum Finance in February 2017, Charles-Henri de Marignac spent four years at Mirabaud & Cie as portfolio manager. Prior to that, he was an equity analyst and fund manager at S.W. Mitchell Capital in London between 2008 and 2012.
The investment approach developed by Charles-Henri de Marignac is based on a fundamental "bottom-up" analysis to find investment opportunities with a medium-term perspective. Very different from the more common standardized products, the strategy does not seek to reproduce its reference benchmark and can thus deviate significantly from it. The use of leverage is possible but limited to 30% per position.

This investment philosophy results in a concentrated portfolio with few positions (between 7 and 20) on which the manager has strong convictions. To ensure alignment of interests, he personally invests alongside investors.

The strategy is structured in the form of a Luxembourg Reserved Alternative Investment Fund (or RAIF), which is not registered for distribution in Switzerland and is only available to qualified investors. The fund’s objective is to outperform significantly the MSCI World equity index over a full economic cycle.

A management philosophy based on four golden rules

The manager seeks companies with a solid and well-established model that generate surplus cash flow on a sustainable basis. It favours companies that meet four fundamental principles: an easily understandable business model, clear perspectives, reliable management and accounting methods, and a reasonable valuation. A scoring system determines the maximum weighting of individual positions.

"There are exceptional companies like Coca-Cola or Swedish Match, whose products enjoy strong customer loyalty. This allows them to set higher prices and invest continuously to stay one step ahead. So when we find the rare bird and its value is attractive to us, we can invest up to 15% of the portfolio”.
explains Charles-Henri de Marignac, Fund Manager.